A Must always produce Porter and Ale B Must always produce P

A Must always produce Porter and Ale

B Must always produce Porter only

C Must always produce Ale only

D Can produce Porter or Ale or both

50000 P= 5,000,000 d 40000 30000- P = 4,000,000 c 20000 10000 P 3,000,000 0 0 10,000 20,000 30,000 40,000 50,000 x1 Barrels of Pale Ale

Solution

Can produce Porter or Ale or both. The reason is same iso profit curve is compatible with different combinations of the two goods